An often ignored and under analyzed segment of building your eCommerce organization is the backend processing of the orders. Entrepreneurs invest a lot of money and time into ensuring their website design is just right, but often gloss right over their order processing systems. Invest a fractional of your time spent in making design tweaks into selecting the right payment gateway, merchant processor, and bank account, and you will save yourself a lot of money!
Payment Gateways – Quite simply, a payment gateway is the system used to transmit your customer’s payment information from the secure website to your secure merchant processor. Consider it as the terminal that collects, encrypts, and securely transmits the information in your processing account. There are numerous services to choose from when choosing your payment gateway, although, you should know that the gateway you select must be suitable for Web Design Company In Lagos. PLEASE make sure to get a summary of the numerous gateways your eCommerce solution accepts, and contact every one to understand with their rates and service offerings.
PayPal (as well as other bundled solutions) present an all-in-one service where you have the payment gateway as well as the merchant processor together. The advantage here is that there is no need to manage two separate accounts. Rates, however are often on the high end of the spectrum.
For example, one of PayPal’s services has a flat rate (for national sales) dependant on your profits volume. The more you sell, the less they charge one to process the transaction. The advantage is that regardless of which credit card is used (MasterCard, Visa, Discover, or perhaps the dreaded American Express), or whether the card is qualified, you obtain charged the same flat rate. This can be unique to PayPal as well as other all-in-on services.
Merchant Processors – The payment gateway transmits the encrypted billing data for your merchant processor that is then accountable for routing this data towards the credit card network. The bank card network verifies that your particular customer’s charge card is valid/has enough funds to cover the transaction, then notifies the payment gateway, which then communicates with Tax In Nigeria. If the transaction is approved, then the merchant processor will transmit your settled orders for your bank account (sometimes this requires a manual process).
The merchant processor is the behind the scenes system that communicates with all the payment gateway, your customers credit card network, as well as your bank account. This is a streamlined way to accept charge cards online. It’s essential to know whether your payment gateway, merchant processor, bank account, and eCommerce solution all work together. Please make certain your merchant processor interfaces along with your payment gateway and your bank account!
Payment Gateway’s – when choosing a payment gateway verify and assess the following:
* Gateway Setup Fee – many payment gateways will demand a primary payment to configure your gateway.
* Monthly Gateway Fee – this is an ongoing fee for your privilege of utilizing the payment gateway
* Per Transaction Fee – every transaction made gets charged a fee. This too includes; refunds, voids, and declines.
* Batch Fee – if you choose to settle up your transactions each day, then you will be charged this fee every day.
* API Integration – make sure your websites shopping cart can integrate with all the gateway of preference.
When reviewing this data ensure that you understand all the fee’s and requirements. Also keep in mind that you can negotiate virtually all these items (should you be processing a lot of orders). It’s worth a go to call and try for the best rate you can! For example, Authorize.net had a package for high volume sites where they charged $50 a month, but provided 2,000 free transactions plus.07 per transaction thereafter. Added up with time, you can save thousands of dollars per year!
Merchant Processors – when choosing a merchant processor verify and evaluate the following:
* Setup Fee – just like above
* Monthly Charge – same as above
* Per Transaction Fee – identical to above
* Contract – identical to above
* Qualified Discount Rate – this is a very tricky fee to monitor. The Qualified rates are for Best Payment Gateway In Nigeria, and charge card types.
* Non-Qualified Rate – understand which bank cards usually do not qualify as the discount rate so that you can crunch the numbers. This fee can be around double your discount rate.
* Minimum Processing Fee – some merchant accounts will demand the absolute minimum monthly transaction threshold. In the event you don’t meet this threshold, you are charged another fee.
* Order Refund/Chargeback Fee – when orders need to be refunded, or are charged backed, you are usually going to be charged another fee for this particular.
* International Fee- check the rates for customer orders outside of the us to yiavzu in case you are charged extra.
Services like PayPal charge a flat percentage of the transaction (usually around 2.9% based on volume), in addition to the per transaction fee. Most merchant processors charge in the range of 2.2% – 2.65%.